CHEESE AND BETTER.

Rangitikei Advocate and Manawatu Argus, Volume XXXIV, Issue 9386, 4 March 1909, Page 8

CHEESE AND BETTER.

'* Mr Gwillim, Government grader of dairy prodace, gives the following comparison between the profits obtained by batter and cheese manufacture respectively. The average value of butter tor the past five years is 108 s Id per cwt. If wo deduct 10s 6d per cwt for the freight Home and the selling charges then it [is equal to 97s 7d on board steamer at our shipping port. Say 10d per lb. What does that mean n§fc for butter-fat to the milk supplier? Now, with 1131 b of hotter being made from 1001 b of, butter-fat in the / whole milk, and butter worth • lOd per lb., one pound of butter-fat is worth ll%d. Taking the buttermaking business as a whole, I may put the f. o. b. cost of making at equal to l%d per lb , butter-fat. Deduct * this from the net return is for bntter-fsit IQd per lb. The average of the selling prices of cheese is ;57s 5d per cwt- The expenses for \ freight Home selling there may be put at ■Bs per cwt, which is equal to 49s 5d on board the Home steamer here. Say 5%d per lb. W,ith 2501bs of ■ cheese made "from lOOlbs butterfat, one poond ot butter-fat is worth Say thef.o.b. cost of making cheese is 2d per lb, butter-fat and we have a net return for butter-fat of Now, if the milk supplier requires one penny per lb more for his butter-fat when supplying a cheese factory—well, if you will sav, oneipenny and an eighth-my contention that bnttermaking- and obeesemaking are equally good is demonstrated. If any further proof ■is necessary, I could quote you the net retunrs for the past seven or eight years of a butter factory and a cheese factory both working on good lines. The net results are that the cheese factory has paid out just about one penny more than the •butter factory. And 1 think I can' fairly say the butter factory suppliers have quite made up the difference in the profit derived from the skim milk. ’